The Chairperson of Amesite Inc. (NASDAQ:AMST), Ann Sastry, Just Bought A Few More Shares

By
Simply Wall St
Published
November 19, 2021
NasdaqCM:AMST
Source: Shutterstock

Even if it's not a huge purchase, we think it was good to see that Ann Sastry, the Chairperson of Amesite Inc. (NASDAQ:AMST) recently shelled out US$50k to buy stock, at US$1.31 per share. Nevertheless, it only increased their shareholding by a minuscule percentage, and it wasn't a massive purchase by absolute value, either.

Check out our latest analysis for Amesite

Amesite Insider Transactions Over The Last Year

The insider, M. Tompkins, made the biggest insider sale in the last 12 months. That single transaction was for US$364k worth of shares at a price of US$4.26 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (US$1.31). So it may not shed much light on insider confidence at current levels. The only individual insider seller over the last year was M. Tompkins.

M. Tompkins ditched 877.06k shares over the year. The average price per share was US$3.01. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume
NasdaqCM:AMST Insider Trading Volume November 20th 2021

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Does Amesite Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Amesite insiders own 43% of the company, worth about US$12m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Amesite Insiders?

It is good to see the recent insider purchase. But we can't say the same for the transactions over the last 12 months. Overall, we'd prefer see a more sustained buying from directors, but with a significant insider holding and more recent purchases, Amesite insiders are reasonably well aligned, and optimistic for the future. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Every company has risks, and we've spotted 6 warning signs for Amesite (of which 3 are a bit concerning!) you should know about.

But note: Amesite may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.

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